The amount includes the assumption of approximately $7.5 million of working capital after accounting for estimated transaction costs.
Waseca is a private company working in the Lloydminster, Alta., area with 100 per cent of its production consisting of heavy oil.
Waseca is owned 81.1 per cent by Sprott Resource Corp., which is expected to own about nine per cent of the outstanding Twin Butte common shares once the deal goes through.
At closing, Twin Butte anticipates it will have approximately 245.9 to 256.1 million shares outstanding.
Twin Butte also says that conditional on the closing of the Waseca deal, it will boost its monthly dividend by 6.7 per cent from 15 cents to 16 cents per share.
The acquisition is expected to close in early November and is subject to the approval of at least 66 per cent of Waseca shareholders.
The boards of both companies have unanimously approved the deal.Suggest a correction